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This paper provides a brief and selective overview of research on the links between macroeconomic policies and poverty …
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• Adjustment does not necessarily increase poverty • Adjusting before a crisis reduces social costs • Refusal to adjust … high costs • Action by donor countries is indispensable to offset the increase in poverty linked to stabilisation measures …
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The analysis shows that the process of shifting the burden of stabilisation to the lower tiers of the government has seriously shrunk the capacity of the provincial governments to invest in social services. This has resulted in low social expenditures and, consequently, poor social conditions in...
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